On March 11, the U.S. Department of Justice and U.S. Attorney’s Office announced that Aetna, a national health insurer, has agreed to pay $117,700,000 to settle alleged violations of the False Claims Act (FCA). The government was investigating Aetna for submitting inaccurate and untruthful diagnosis codes for its Medicare Advantage Plan beneficiaries, which increased Aetna’s
Medicare and Medicaid
OIG Issues New Compliance Guidance for Medicare Advantage
Last month, the U.S. Department of Health and Human Services’ Office of Inspector General (“OIG”) published Medicare Advantage Industry Segment-Specific Compliance Program Guidance (“Guidance”). OIG described the Guidance as “OIG’s updated and centralized source of voluntary compliance program guidance for Medicare Advantage.”[1] The impetus for creating the Guidance was “the growing popularity” and OIG’s…
Nest Health Launches In-Home Prenatal Program for Medicaid Patients in Louisiana
Maternal health has received increased attention in federal and state Medicaid reform efforts in recent years, particularly in states with elevated mortality and disparity metrics.[1] As Medicaid agencies and managed care organizations consider alternative ways of structuring prenatal care, some providers are expanding services beyond traditional clinic settings.
Nest Health recently launched Nest Origin…
Medicare Telehealth Waivers Extended
On February 3, President Trump signed the Consolidated Appropriations Act, 2026 (H.R.7418), which extends certain Medicare telehealth flexibilities through December 31, 2027. These flexibilities were initially enacted by Congress in response to the COVID-19 pandemic and rising need for telehealth services.
The most important aspect of these flexibilities was that they permitted Medicare beneficiaries to…
Renewed Federal Focus On Abuses in Home Health Industry
Last month, Dr. Mehmet Oz, Administrator of the Centers for Medicare & Medicaid Services (CMS), accompanied by other CMS officials, visited with home health and hospice providers and related industry associations to discuss ways to strengthen program integrity enforcement. CMS was reacting to calls from industry stakeholders and members of Congress to get a handle…
OIG Issues Favorable Advisory Opinion for Waiving Cost Sharing for Cancer Screening Test
In a recent Advisory Opinion (No. 26-01), the U.S. Department of Health and Human Services’ Office of Inspector General (OIG) concluded that waiving cost sharing for certain commercially insured patients who receive a cancer screening test is permissible under the federal Anti-Kickback Statute.
The opinion pertains to a clinical laboratory test that screens for…
OIG: Offering Bonuses to Employees for Referrals Implicates AKS and CMP
The Office of Inspector General (OIG) of the U.S. Department of Health and Human Services recently issued an unfavorable Advisory Opinion (No. 25‑12) addressing a home health care agency’s proposal to offer sign‑on bonuses to prospective employees who are in a position to refer patients (usually family members) to the employer for home care. The…
OIG Gives Thumbs Down to Payment of Sign-On Bonuses by Home Care Agency
In an unfavorable Advisory Opinion issued last week[1], the Office of Inspector General, U.S. Department of Health and Human Services (OIG) found that a home care agency’s plan to market sign-on bonuses to prospective employees with the intention of employing those individuals to provide services to family members could result in sanctions for…
Electronic Visit Verification: The New Frontier in Home Health Fraud Enforcement
The 21st Century Cures Act (Cures Act) required states to adopt electronic visit verification (EVV) systems for Medicaid-covered personal care services (PCS) by January 1, 2020 and for home health care services (HHCS) by January 1, 2023. According to the Centers for Medicare and Medicaid Services (CMS), the EVV requirement was imposed “in response to…
Diagnostic Lab to Pay $9.6 Million to Settle FCA/AKS Allegations
The U.S. Department of Justice recently announced a settlement with Patients Choice Laboratories (“PCL”), a diagnostic laboratory headquartered in Indianapolis, Indiana, under which PCL will pay over $9.6 million to resolve allegations that it violated the federal False Claims Act (FCA) and Anti-Kickback Statute (AKS). The government alleged that the lab knowingly submitted claims to…
